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Another ACCT 301 Probelm Question?


Sold 500 shares of Ramblewood Manufacturing Corporation common stock that had been held as a short-term investment. The stock sold for 14 3/4, less a commission of $147.75. The stock was originially purchased as a block of 1000 shares at a total cost (including commission) of $9,250.

What is correct simple journal entry???

should be...

dr. Cash 7227.25
cr. Inv in AFS 4625
cr. Gain from sale of Inv 2602.25

AFS- Available for Sale
Its a classification of stock, yes its where you would have originally recorded it Report It

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